Kraken has withdrawn its controversial Monero withdrawal questionnaires after criticism from privacy advocates and Monero users.
Last week, some Kraken users trying to withdraw Monero were asked not just for employer and source-of-funds details, but also for their intended use of the coins after withdrawal, essentially, what they planned to do with their Monero once it left the exchange.
That last question drew particular backlash, as Monero is engineered so transactions and wallet balances are not publicly visible. For Monero’s community, the idea that an exchange could demand disclosure of off-platform activities was seen as an overreach.
On October 24, Kraken co-CEO Arjun Sethi responded directly, calling the outreach ‘wrong’ and confirming that affected clients would no longer need to respond. Monero will remain listed and available on Kraken where supported.
The exchange maintains its basic source-of-funds checks, saying it still needs to vet where assets originate to meet regulatory obligations. But intended-use inquiries are now explicitly out.
What remains unclear is how many users received the questionnaire, how long the practice was in place, or which country’s rules prompted it. What is clear is that Kraken has now withdrawn those intended-use requests after the backlash.